OPEC Caps Nigeria’s Oil Output at 1.77mbpd

• OPEC Caps Nigeria’s Oil Output at 1.77mbpd

The Organisation of Petroleum Exporting Countries (OPEC) has capped Nigerian crude oil output at 1.77 million barrels per day (mbpd) following the new agreements reached by its members.

Nigeria pumped around 2.2 mbpd in August despite having a quota of 1.69mbpd, according to a Bloomberg shipment tracking data.

The new Nigerian Minister of State for Petroleum Resources, Timipre Sylva, said Nigeria was ready to work in line with the new agreement.

He, however, said the country and other OPEC members were willing and ready to cut crude production further if prices continue to fall.

“Everybody agrees in OPEC that we need to stabilise the market. We cannot allow prices just to plummet,” Sylva stated during an interview on Bloomberg TV.

OPEC lowered oil demand for 2020, saying global uncertainty and weak growth would hurt demand. That was before, the world’s largest crude oil export, Saudi Arabia, was attacked by Houthi Rebel on September 14th.

Last week, Saudi soldiers were captured around its border with Yemen, suggesting the unrest in the region may hurt new investment as energy investors doubt the Saudi’s ability to curtail crisis with Iran-backed rebel.

Oil currently trading below Nigeria’s 2019 benchmark of $60 a barrel.